The cryptocurrency world has been shaken by a historic cyberattack, as Bybit, one of the largest exchanges, has lost $1.4 billion worth of Ethereum in what is now considered the most significant hack in the industry’s history.
The breach has triggered widespread panic, leading to massive liquidations in Ethereum futures markets and renewed concerns about security within the crypto sector.
Ethereum Traders Take Heavy Losses
The attack has caused $76 million in liquidations within four hours, with more than 183,000 traders forced out of positions, according to CoinGlass. The total value of liquidations in the past 24 hours has reached $499 million, sending Ethereum prices tumbling.
As of the latest update, Ethereum is trading at $2,727, down 3%, while Bitcoin has also declined by 1%, currently valued at $98,091.
Bybit’s Official Statement on the Hack
Bybit’s CEO Ben Zhou confirmed the attack, explaining that a smart contract vulnerability allowed hackers to manipulate the exchange’s ETH cold wallet.
"A planned cold wallet transfer was exploited, leading to an unauthorized transaction that drained significant funds," Zhou stated.
He assured users that despite the loss, Bybit remains operational and financially secure.
Hackers Attempt to Obscure Stolen Funds
Security experts have tracked the stolen Ethereum, which has already been split into 39 different wallets—a method commonly used by cybercriminals to complicate asset recovery efforts.
Blockchain security firm Arkham Intelligence has stepped in, offering a $50,000 bounty for information that could lead to identifying those responsible.
"We are calling on the blockchain community to help uncover the attackers behind this unprecedented hack," Arkham announced.
How This Compares to Past Crypto Hacks
With $1.4 billion in stolen assets, the Bybit hack has now surpassed all previous crypto breaches, including:
- Ronin Network (2022) – $625M stolen
- Mt. Gox Collapse (2014) – $460M in Bitcoin lost
- Poly Network Hack (2022) – $611M drained
This latest breach underscores ongoing security risks in the crypto industry, raising questions about how exchanges can better protect user funds in the future.
